CONFERENCE COMMITTEE REP. NO.85

Honolulu, Hawaii

, 2001

RE: H.B. No. 271

H.D. 1

S.D. 1

C.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 271, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE RENTAL INDUSTRY,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this bill is to allow indirect commissions for selling collision damage waivers (CDWs).

Your Committee on Conference finds that in 1990, the Legislature barred the payment of commissions on the sale of rental vehicle CDWs because of lessee confusion about the nature of CDWs and the potential for abuse relating to their sale. At the time, there were over 35 rental companies operating in Hawaii.

 

 

Your Committee on Conference further finds that at present, there are fewer than 15 rental companies in Hawaii and as such, there exists much less of a basis to regulate the rental car industry through the prohibition of commissions on the sale of CDWs. In addition, your Committee on Conference finds that there are many segments of the tourism industry that pay commissions and evaluate or reward their employees based on their performance in selling the various packages and programs offered by the employer.

Based on the foregoing, your Committee on Conference believes that the motor vehicle rental industry should no longer be singled out by a law barring the payment of commissions calculated in part from the sale of CDWs.

The Regulated Industries Complaints Office of the Department of Commerce and Consumer Affairs (DCCA) raised concerns that compensation to an employee for CDW's would be excessively high. In response to this, your Committee on Conference has amended this bill by adding language which serves to continue the prohibition against direct commissions on CDW sales, but allows consideration of CDW sales on an indirect basis, as one of many factors for purpose of evaluation and compensation.

Additionally, in response to concerns voiced by DCCA, your Committee on Conference has amended this bill by adding a sunset provision that repeals the amendments made by this bill on June 30, 2003.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 271, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 271, H.D. 1, S.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________

CAL KAWAMOTO, Chair

____________________________

KENNETH T. HIRAKI, Chair

____________________________

RON MENOR, Co-Chair